The Texas Supplemental Retirement Plan (TARP) is a retirement savings program designed to provide additional income for employees of eligible Texas state agencies and higher education institutions. With an aim to support employees in preparing for a financially secure retirement, TARP offers various investment options and potential tax advantages. One of the types of TARP is the 403(b) plan. This plan is available for employees of public educational institutions, tax-exempt organizations, and ministers. It allows participants to make voluntary contributions through payroll deductions, with the advantage of tax-deferred growth potential until withdrawals are made during retirement. Another type of TARP is the 457(b) plan. This plan is offered to employees of state agencies and local governments, including counties, cities, townships, and school districts. Similar to the 403(b) plan, it enables employees to contribute a portion of their salary on a pre-tax basis, helping to reduce their taxable income. The funds deposited in the account also grow tax-deferred until they are withdrawn during retirement. Participating in the TARP brings several benefits to employees. Firstly, it offers a convenient and disciplined approach to saving for retirement, as contributions are deducted automatically from the employee's paycheck. Secondly, the plan enables employees to take advantage of potential tax savings through pre-tax contributions, effectively lowering their current taxable income. Furthermore, employees have flexibility in choosing from various investment options, ranging from conservative to aggressive, according to their risk tolerance and retirement goals. The investments made within the TARP are managed by experienced financial firms, ensuring professional oversight and potential growth. Employees can regularly monitor their account's progress through online portals, accessing detailed information about their contributions, investment performance, and potential retirement income projections. To provide further support, the TARP offers educational resources and personalized guidance to help employees make informed decisions regarding their retirement savings. It conducts workshops, webinars, and one-on-one counseling sessions to address employees' questions and help them navigate the complexities of retirement planning. In summary, the Texas Supplemental Retirement Plan is a valuable retirement savings program for eligible employees of Texas state agencies and higher education institutions. With options like the 403(b) and 457(b) plans, it provides flexibility, convenience, and potential tax advantages to help employees achieve a financially secure retirement. By offering various investment options and educational resources, TARP empowers employees to make informed decisions and effectively grow their retirement savings.
Texas Supplemental Retirement Plan
Category:
State:
Multi-State
Control #:
US-CC-21-104
Format:
Word;
Rich Text
Instant download
Description
21-104 21-104 . . . Supplemental Executive Retirement Plan which permits eligible management and highly-compensated employees to receive benefits that will compensate them for limitations imposed by Sections 401(a)(17), 401(k), 401(m) and 402(g) of Internal Revenue Code on salary deferrals and matching contributions under 401(k) plan
The Texas Supplemental Retirement Plan (TARP) is a retirement savings program designed to provide additional income for employees of eligible Texas state agencies and higher education institutions. With an aim to support employees in preparing for a financially secure retirement, TARP offers various investment options and potential tax advantages. One of the types of TARP is the 403(b) plan. This plan is available for employees of public educational institutions, tax-exempt organizations, and ministers. It allows participants to make voluntary contributions through payroll deductions, with the advantage of tax-deferred growth potential until withdrawals are made during retirement. Another type of TARP is the 457(b) plan. This plan is offered to employees of state agencies and local governments, including counties, cities, townships, and school districts. Similar to the 403(b) plan, it enables employees to contribute a portion of their salary on a pre-tax basis, helping to reduce their taxable income. The funds deposited in the account also grow tax-deferred until they are withdrawn during retirement. Participating in the TARP brings several benefits to employees. Firstly, it offers a convenient and disciplined approach to saving for retirement, as contributions are deducted automatically from the employee's paycheck. Secondly, the plan enables employees to take advantage of potential tax savings through pre-tax contributions, effectively lowering their current taxable income. Furthermore, employees have flexibility in choosing from various investment options, ranging from conservative to aggressive, according to their risk tolerance and retirement goals. The investments made within the TARP are managed by experienced financial firms, ensuring professional oversight and potential growth. Employees can regularly monitor their account's progress through online portals, accessing detailed information about their contributions, investment performance, and potential retirement income projections. To provide further support, the TARP offers educational resources and personalized guidance to help employees make informed decisions regarding their retirement savings. It conducts workshops, webinars, and one-on-one counseling sessions to address employees' questions and help them navigate the complexities of retirement planning. In summary, the Texas Supplemental Retirement Plan is a valuable retirement savings program for eligible employees of Texas state agencies and higher education institutions. With options like the 403(b) and 457(b) plans, it provides flexibility, convenience, and potential tax advantages to help employees achieve a financially secure retirement. By offering various investment options and educational resources, TARP empowers employees to make informed decisions and effectively grow their retirement savings.
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